NORTH AMERICA. Lagardère Travel Retail has closed the acquisition of leading North American travel retailer and restaurateur Paradies, after receiving the required authorisations.
The deal, announced on 11 August, will combine the activities of Paradies and Lagardère Travel Retail in North America, creating the region’s second-largest travel retailer, with total revenue of around US$800 million (€720 million) in 2015. In a recent interview with The Moodie Report, Lagardère Travel Retail Chairman & CEO Dag Rasmussen said the move builds a “third region of strength” for the Paris-based company.
Lagardère said: “Thanks to the complementary nature of the two companies’ operating locations and concepts, this transaction will generate commercial and financial synergies in the North American market, which offers attractive growth prospects.”
The integration of the two companies will be led by Paradies President and CEO Gregg Paradies, who will lead the combined entity. Gerry Savaria, LS travel retail North America’s President and CEO, will become the Executive Vice President.
The move gives Lagardère Travel Retail critical mass in North America, with a presence in more than 100 airports.
In its 2014/2015 financial year, Paradies generated consolidated net sales of US$515 million (€471 million).
“This significant acquisition represents a major step forward in Lagardère Travel Retail’s growth strategy,” said the group.
